Established in by John D. Rockefeller and Henry Flagler as a corporation in Ohioit was the largest oil refinery in the world of its time.

Standard Oil dominated the oil products market initially through horizontal integration in the refining sector, then, in later years vertical integration ; the company was an innovator in the development of the business trust.

The Standard Oil trust streamlined production and logistics, lowered costs, and undercut competitors. Rockefeller ran the company as its chairman, until his retirement in He remained the major shareholder, and inwith the dissolution of the Standard Oil trust into 34 smaller companies, Rockefeller became the richest man in the world, as the initial income of these individual enterprises proved to be much bigger than that of a single larger company.

Its successors such as ExxonMobil or Chevron are still among the companies with the largest Facts about oil companies and domination worldwide. Byhis top aide was John Dustin Archbold. AfterRockefeller disengaged from business to concentrate on his philanthropy, leaving Archbold in control.

Rogerswho built the Virginian Railway. Standard Oil's pre-history began in as an Ohio partnership formed by industrialist John D. InRockefeller abolished the partnership and incorporated Standard Oil in Ohio.

Of the initial 10, shares, John D. In the early years, John D. Rockefeller dominated the combine; he was the single most important figure in shaping the new oil industry. Authority was centralized in the company's main office in Facts about oil companies and domination, but decisions in the office were made in a cooperative way.

The company grew by increasing sales and through acquisitions. After purchasing competing firms, Rockefeller shut down those he believed to be inefficient and kept the others. Standard's actions and secret [13] transport deals helped its kerosene price to drop from 58 to 26 cents from to Competitors disliked the company's business practices, but consumers liked the lower prices.

Standard Oil, being formed well before the discovery of the Spindletop oil field in Texas, far from Standard Oil's base in the Mid-West and a demand for oil other than for heat and light, was well placed to control the growth of the oil business.

The company was perceived to own and control all aspects of the trade. InRockefeller joined the South Improvement Co.

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But when this deal became known, competitors convinced the Pennsylvania Legislature to revoke South Improvement's charter. No oil was ever shipped under this arrangement. Barton Hepburn was directed by the New York State Legislature in to investigate the railroads' practice of giving rebates within the state.

Merchants without ties to the oil industry had pressed for the hearings. Prior to the committee's investigation, few knew of the size of Standard Oil's control and influence on seemingly unaffiliated oil refineries and pipelines - Hawke cites that only a dozen or so within Standard Oil knew the extent of company operations.

The committee counsel, Simon Sternequestioned representatives from the Erie Railroad and the New York Central Railroad and discovered that at least half of their long-haul traffic granted rebates, and that much of this traffic came from Standard Oil. The committee then Facts about oil companies and domination focus to Standard Oil's operations.

He then Facts about oil companies and domination to being a director of Standard Oil. The committee's final report scolded the railroads for their rebate policies and cited Standard Oil as an example.

This scolding was largely moot to Standard Oil's interests since long-distance oil pipelines were now their preferred method of transportation. In response to state laws trying to limit the scale of companies, Rockefeller and his associates developed innovative ways of organizing, to effectively manage their fast growing enterprise.

On January 2,[15] they combined their disparate companies, spread across dozens of states, under a single group of trustees.

The law forbade every contract, scheme, deal, or conspiracy to restrain trade, though the phrase "restraint of trade" remained subjective. The Standard Oil group quickly attracted attention from antitrust authorities leading to a lawsuit filed by Ohio Attorney General David K. Vice-president John Dustin Archbold took a large part in the running of the firm. At the same time, state and federal laws sought to counter this development with " antitrust " laws.

Inthe US Justice Department sued the group under the federal antitrust law and ordered its breakup into 34 companies. Standard Oil's market position was initially established through an emphasis on efficiency and responsibility.

While most companies dumped gasoline in rivers this was before the automobile was popularStandard used it to fuel its machines.

While other companies' refineries piled mountains of heavy waste, Rockefeller found ways to sell it. For example, Standard created the first synthetic competitor for beeswax and bought the company that invented and produced Vaselinethe Chesebrough Manufacturing Co.

One of the original " Muckrakers " was Ida M. Tarbellan American author and journalist. Her father was an oil producer whose business had failed due to Rockefeller's business dealings.

After extensive interviews with a sympathetic senior executive of Standard Oil, Henry H. RogersTarbell's investigations of Standard Oil fueled growing public attacks on Standard Oil and on monopolies in general.

The Standard Oil Trust was controlled by a small group of families. Rockefeller stated in These families reinvested most of the dividends in other industries, especially railroads. They also invested heavily in the gas and the electric lighting business including the giant Consolidated Facts about oil companies and domination Co. However, the deal fell through and the firm was sold to Royal Dutch Shell.

Standard Oil's production increased so rapidly it soon exceeded U. In the s, Standard Oil began marketing kerosene to China's large population of close to million as lamp fuel.

Response was positive, sales boomed and China became Standard Oil's largest market in Asia.

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Prior to Pearl Harbor, Stanvac was the largest single U. For inland distribution the Facts about oil companies and domination had motor tank trucks and railway tank cars, and for river navigation it had a fleet of low-draft steamers and other vessels. Stanvac's North China Division, based in Shanghai, owned hundreds of river going vessels, including motor barges, steamers, launches, tugboats and tankers.

Mei Hsiaa tanker, was specially designed for river duty and was built by New Engineering and Shipbuilding Works of Shanghai, who also built the ton launch Mei Foo in Mei Hsia "Beautiful Gorges" was launched in and carried tons of bulk oil in Facts about oil companies and domination holds, plus a forward cargo hold, and space between decks for carrying general cargo or packed oil.

Mei Ping "Beautiful Tranquility"launched inwas designed offshore, but assembled and finished in Shanghai. Its oil-fuel burners came from the Facts about oil companies and domination. It explored in Palestine before the World War broke out, but ran into conflict with the British government. ByStandard Oil controlled 88 percent of the refined oil flows in the United States. The state of Ohio successfully sued Standard, compelling the dissolution of the trust in But Standard simply separated Standard Oil of Ohio and kept control of it.

Eventually, the state of New Jersey changed its incorporation laws to allow a company to hold shares in other companies in any state. The Epic Quest for Oil, Money, and Powerthis conglomerate was seen by the public as all-pervasive, controlled by a select group of directors, and completely unaccountable.

InStandard controlled 91 percent of production and 85 percent of final sales. Most of its output was keroseneof which 55 percent was exported around the world. After it did not try to force competitors out of business by underpricing them.

Inthe US Department Facts about oil companies and domination Justice sued Standard under federal anti-trust law, the Sherman Antitrust Act offor sustaining a monopoly and restraining interstate commerce by:. Rebates, preferences, and other discriminatory practices in favor of the combination by railroad companies; restraint and monopolization by control of pipe lines, and unfair practices against competing pipe lines; contracts with competitors in restraint of trade; unfair methods of competition, such as local price cutting at the points where necessary to suppress competition; [and] espionage of the business of competitors, the operation of bogus independent companies, and payment of rebates on oil, with the like intent.

The lawsuit argued that Standard's monopolistic practices had taken place over the preceding four years:. The general result of the investigation has been to disclose the existence of numerous and flagrant discriminations by the railroads in behalf of the Standard Oil Co.

With comparatively few exceptions, Facts about oil companies and domination of other large concerns in California, the Standard has been the sole beneficiary of such discriminations. In almost every section of the country that company has been found to enjoy some unfair advantages over its competitors, and some of these discriminations affect enormous areas.

The government identified four illegal patterns: Almost everywhere the Facts about oil companies and domination from the shipping points used exclusively, or almost exclusively, by the Standard are relatively lower than the rates from the shipping points of its competitors. Rates have been made low to let the Standard into markets, or they have been made high to keep its competitors out of markets.

Trifling differences in distances are made an excuse for large differences in rates favorable to the Standard Oil Co.

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Sometimes connecting roads prorate on oil—that is, make through rates which Facts about oil companies and domination lower than the combination of local rates; sometimes they refuse to prorate; but in either case the result of their policy is to favor the Standard Oil Co.

Different methods are used in different places and under different conditions, but the net result is that from Maine to California the general arrangement of open rates on petroleum oil is such as to give the Standard an unreasonable advantage over its competitors. The government said that Standard raised prices to its monopolistic customers but lowered them to hurt competitors, often disguising its illegal actions by using bogus Facts about oil companies and domination independent companies it controlled.

The evidence is, in fact, absolutely conclusive that the Standard Oil Co. It ordered Standard to break up into 34 Facts about oil companies and domination companies with different boards of directors, the biggest two of the companies were Standard Oil of New Jersey which became Exxon and Standard Oil of New York which became Mobil. Standard's president, John D. Rockefeller, had long since retired from any management role. But, as he owned a quarter of the shares of the resultant companies, and those share values mostly doubled, he emerged from the dissolution as the richest man in the world.

Over the next few decades, both companies grew significantly. Jersey Standard, led by Walter C. Teaglebecame the largest oil producer in the world. Socony purchased a 45 percent interest in Magnolia Petroleum Co.

The future of the major international oil companies (IOCs) – BP, Chevron, After , this dominance was gradually replaced by the growing role of . This diminished role in the supply of products reflects two things. First.